After a recent sales report, that does not look good which is brought about by terribly phone sales, it doesn’t look good for the future of BlackBerry. Also, the timetable for the smartphone manufacturer’s turnaround does seem to extend further. Even though there are still investors who think that things could not get any worse, it might be if the company is seen to still go down the current path.
The Future of BlackBerry Seems Bleak
After just a week after the sales report came from BlackBerry, they have announced that they’re going to cut off the Priv’s price. For those who are not in the know, the Priv is the tech manufacturer’s attempt to bring back lost sales by incorporating the Android platform into their own device. Even though the price reduction is not that much, and even though it IS a price reduction (because, after all, who doesn’t like a discounted offering), it is seen that it won’t really do much in boosting sales. If the company would really want to stimulate their sales, particularly that of the Priv, then a price cut of about 7-percent or more should happen.
It’s not just with regards to the BlackBerry Priv that is seen as a problem for the company; the notion here is that there’s a dilemma being faced for the firm’s entire hardware division. On one hand, John Chen, CEO of the smartphone manufacturer, states that should the segment won’t show any profitability by the time September rolls in this year, then he might decide that the company would go forward as a software/service only company instead. This could mean that he will be dismissing their entire hardware division when the time arrives and IF no improvements with regards to sales were to happen.
However, this is not the only thing that the CEO said; he also proclaimed that the company is now working on a mid-range device which might launch sometime this year. The Priv was aimed at the high-end of the market and that may not be a smart move right off the bat with a company that’s already struggling with sales. Sometimes it might be a good idea to target the lower-ends of the market to gain maximum profit with the number of units sold rather than going for the bigger prize right at the onset.
There are, however, doubts pertaining to the new phone being developed by BlackBerry because of what Chen stated pertaining to the idea of abandoning their hardware division. What could happen, on the other hand, is that the Priv “might” be a mid-range device in a few month’s time.